GHG Daily
2/1/2016
A scenario in which sufficient steps are taken to increase clean energy development to limit global temperature rise to less than 2 degrees Celsius represents an investment opportunity of $12.1 trillion over 25 years, according to a new report developed by Bloomberg New Energy Finance, Ceres. “A world working to achieve the goals of the Paris Climate Agreement – to limit temperature change to 2 [degree Celsius] or below – will see investment in new renewable power generation increase 75 [percent] above business-as-usual,” the report says.
However, if investments stall on a business as usual path, they will only total $6.9 trillion, resulting in a $5.2 trillion gap, according to the Jan. 27 report. “While these sums may appear daunting, they are dwarfed by global financial markets. In the US alone, consumers borrowed $542 [billion] over the past year to purchase cars, and assumed $1.4 trillion in new mortgage debt. Clearly, the financial markets have the capacity to absorb the financing “gap” between BAU and 2 [degrees Celsius],” the report says.
